Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 2.3P
To determine
To explain the fall in retail sales and rise in
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Gross domestic product (GDP) is a measurement of the total value of all goods and services produced in the United States over a given time period. It is used by economists, government officials, market forecasters and others to gauge the overall health of the U.S. economy. How do consumers drive the nation's GDP?
Consider the following hypothetical data for the U.S. economy in 2018 (all amounts are in trillions of dollars; see pages 179–182).Consumption 11.0 Indirect business taxes .8 Depreciation 1.3 Government spending 3.8 Imports 2.7 Gross private domestic investment 4.0 Exports 2.5e. Based on the data, what is GDP? NDP? NI?f. Suppose that in 2019, exports fall to $2.3 trillion, imports rise to $2.85 trillion, and gross private domestic investment falls to $3.25 trillion. What will GDP be in 2019, assuming that other values do not change between 2018 and 2019?
Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.
Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign
in front of those numbers.
Consumption expenditures
Exports
Government purchases of goods and services
Construction of new homes and apartments
Sales of existing homes and apartments
Imports
GDP
Beginning-of-year inventory stocks
End-of-year inventory stocks
Business fixed investment
Government payments to retirees
Household purchases of durable goods
Consumption expenditures: $
Investment expenditures: $
Government Purchases: $
Net Exports: $
GDP: $
$800
$50
$200
$200
$200
$125
$100
$100
$100
$100
$150
Chapter 21 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- Savings and wealth - Although the United States is one of the richest nations in the world, it is also one of the world's largest debtor nation. We often hear that the problem is our low savings rate. Suppose policy makers attempt to rectify this be encouraging greater savings in the economy. What could they do to make you save more? Would raising minimum wage help? What effects would their successful attempts have on GDP? Is this a good or bad idea? What can you do to increase your savings rate? Also, how is wealth related to savings?arrow_forwardIn the future report of U.S. Gross Domestic Product (GDP) for Quarter 1 of 2023, which of the following would not be an example of an expenditure that would contribute to an increase in the level of GDP in Q1 of 2023? [note: focus on the direct impact of each of the choices below] Group of answer choices U.S. household spending on home appliances increases by 0.5% in 2023:Q1 Business investment spending on industrial equipment rises by 2% in 2023:Q1 U.S. Federal government interest payments rise by $120 billion in 2023:Q4 U.S. consumer spending on domestic air travel increases by 8% in 2023:Q1. None of the choices listed because all would contribute to an increase in real GDP in 2023:Q1.arrow_forward$3 trillion$6 trillion$8.5 trillion$11.5 trillionarrow_forward
- The following expenditure equation is utilised to measure the economy: GDP = C + I + G + (X-M) Analyse each of the situations below and state which expenditures (or parts of the expenditures) would be counted under which of the four segments of the GDP expenditure equation, ie C, I, G or (X-M). a. The purchase of Australian made furniture by a business for use in its cafe. b. The purchase of foreign made furniture by a business for use in its café. c. The purchase of wood by a business to manufacture furniture which will then be sold to Australian and foreign customers. d. The purchase of 100 shares in ANZ Bank through a stockbroker. e. Purchase of a 10-year-old foreign-made second-hand car from a Car Sales business in Parramatta, NSW. f. A pension paid by the Australian Government to an old age pensioner. g. You babysit for your nieces and nephews so your sister and her husband can go out for dinner.arrow_forwardBob and Cho Tokarev live in Conshohocken, PA. Cho's father, Eric, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), Investment (1), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Bob and Cho's house.. Cho gets a new video camera made in the United States. Cho buys a new BMW, which was assembled in Germany. Bob's employer upgrades all of its computer systems using U.S.-made parts. Cho's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. C 3 000 I D G X M 000arrow_forwardUse the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX) $15,000 $11,750 $1,500 $3,000 -$500 $16,000 $12,500 $1,500 $3,000 -$500 $17,000 $13,250 $1,500 $3,000 -$500 $18,000 $14,000 $1,500 $3,000 -$500 $19,000 $14,750 $1,500 $3,000 -$500 The equilibrium level of GDP is $ 18,000 billion. The MPC is (enter your response to two decimal places).arrow_forward
- Calculate the four components of expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Data $600 Consumption expenditures Exports $75 $200 Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments Imports Beginning-of-year inventory stocks End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods $100 $200 $50 $100 $125 $100 $100 $150 Consumption expenditures: Investment expenditures: $| Government Purchases: $ Net Exports: GDP:arrow_forwardCalculate the four components of expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Consumption expenditures Exports Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments $550 $75 $200 $100 $200 $50 Imports Beginning-of-year inventory stocks $100 End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods $125 $100 $100 $150 Consumption expenditures: Investment expenditures: Government Purchases: Net Exports: GDP:arrow_forwardQuestion 3arrow_forward
- You are an analyst at Heys International Luggage. Your output last year of Carbon-X luggage sets was 100,000 sets, based on estimates that sales would equal 100,000 at an average price of $56.84. Heys International tries to maintain inventory at 10,000 sets. Actual sales of the luggage last year were 105,000. Considering only this result: aggregate expenditure was equal to GDP. aggregate expenditure was less than GDP. aggregate expenditure was greater than GDP. aggregate expenditure is always equal to GDP, so these sales results are irrelevant. 2 of 25 > Яншират ИРИНАРИarrow_forwardYou are an analyst at Heys International Luggage. Your output last year of Carbon-X luggage sets was 100,000 sets, based on estimates that sales would equal 100,000 at an average price of $56.84. Heys International tries to maintain inventory at 10,000 sets. Actual sales of the luggage last year were 105,000. Considering only this result: aggregate expenditure was equal to GDP. aggregate expenditure was less than GDP. aggregate expenditure was greater than GDP. aggregate expenditure is always equal to GDP, so these sales results are irrelevant. 2 of 25 > مد Янират ИРИНАРИ Аarrow_forwardHow do I/ Where can I find the relative size of each of the components (in absolute dollars and as a percentage of GDP) from the U.S. economy from the Bureau of economic analysis (BEA) website? (https://www.bea.gov/news/2023/gross-domestic-product-second-quarter-2023-second-estimate-and-corporate-profits) The four components that make up GDP are: Concumption, investments, governemnt spending and net exportsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
